If you need access to money in a hurry, a personal loan can provide you with anywhere from $500 – $50,000. They can be used for any legitimate purpose, from paying for car repairs to covering unpaid bills. But before applying, you’ll need to compare your personal loan options to find the best deal for your needs.
Are personal loans legal in Nova Scotia?
Personal loans are legal in Nova Scotia, and lenders can legally charge up to 60% (effective annual interest).
Here are the basic features of personal loans in Nova Scotia:
- Interest rates:6.99% – 46.96%
- Loan terms: 3 – 60 months
- Loan amounts: $500 – $50,000
- Types of loans: Secured or unsecured; fixed rate or variable rate
Types of personal loans
- Secured. Secured personal loans involve using an asset you own, such as your house or investments, as collateral. They tend to have lower interest rates because you reduce the lender’s risk by offering collateral. Learn more about secured personal loans.
- Unsecured. As the name suggests, an unsecured personal loan does not involve collateral. They tend to have higher interest rates than secured personal loans.
- Fixed rate. With this loan, you get a fixed interest rate, which means your payments stay consistent throughout the loan term.
- Variable rate. This loan’s interest rate fluctuates with the markets, which impacts your repayments.
Where do I find personal loans in Nova Scotia?
- Banks. Banks are a solid option for borrowers with good to excellent credit. They usually offer the best interest rates but tend to have a more involved application process. It takes a few days to a few weeks to get a personal loan from a bank.
- Credit unions. Like banks, credit unions offer competitive interest rates. However, you might need to become a member in order to apply for a loan. It takes a few days to a few weeks to get a personal loan from a credit union.
- Online lenders. Online lenders are faster to fund loans than banks and credit unions. You can get an online personal loan within 24 to 48 hours. This group tends to be your best bet if you have bad credit – or no credit at all – as they have more flexible lending criteria. Compare online lenders now.
- Peer-to-peer lending platform. With a peer-to-peer lending platform, your loan is funded by everyday Canadian investors, and you may be able to get a lower interest rate than what you get from banks if your finances are strong. A peer-to-peer personal loan takes a few days to a few weeks.
How to compare personal loans
Keep these factors in mind when you’re searching for a personal loan:
- Amount. Loan amount varies from lender to lender. Some max out at $10,000, while others max out at $50,000. Banks and credit unions can fund larger loan amounts than online lenders or peer-to-peer lenders.
- Loan term. Loan term usually ranges from 3 – 60 months, sometimes longer. The longer the loan term, the more interest you pay overall.
- Interest rates. Compare interest rates before agreeing to a personal loan. People with bad credit will end up paying higher interest rates. Your aim is to get the lowest interest rate possible and the shortest loan term while still being able to manage your monthly payments. Learn more about personal loan rates.
- Other fees. Don’t fixate solely on the interest rate. Check whether the lender charges extra fees, such as an origination fee (admin fee to process your loan), penalty charges for late payments or prepayment penalties for paying off your loan early.
Comparing providers
Interest rates depend on your credit history as well as what type of loan you’re taking out (secured or unsecured) and the type of lender you borrow from. The example below illustrates the overall cost of a $5,000 loan over a 36-month term with four different providers.
Lender | Interest rate | Monthly amount | Total cost |
---|---|---|---|
Lender A | 7.84% | $156.31 | $5,627.27 |
Lender B | 11.99% | $166.05 | $5,977.72 |
Lender C | 19.99% | $185.79 | $6,688.53 |
Lender D | 9.5% | $160.16 | $5,765.93 |
In this example, Lender A is the least expensive option.
How can I apply for a personal loan?
You can typically apply for a personal loan either in person or online. If you decide to borrow online, you can submit an application in as little as five minutes, and may be approved almost instantly. Applying at a physical location may take a little longer. Before applying, be sure you meet the eligibility requirements and gather the necessary documents.
Can you get no credit check loans in Nova Scotia?
It’s possible to get a no credit check loan. Instead of examining your credit, lenders will focus on your income – how much you get regularly and how stable it is. But no credit check loans often come with very steep interest rates; since lenders don’t know your credit score, they will err on the side of caution and assume it’s bad. Learn more about no credit check loans.
How can a personal loan in Nova Scotia benefit me?
People often use personal loans to cover unforeseen, large expenses or to consolidate high-interest debts at a lower rate.
If you want to take out a personal loan, only borrow as much as you’ll be able to repay in full by the deadline. You should always try to make your payments on time to avoid additional charges and fees and make sure to communicate with your lender if you’re having difficulty making your payments. If you default, your loan will be sent to collections and you may receive a negative mark on your credit score which can stay there for up to seven years.
How can I tell if a lender in Nova Scotia is legit?
The best way to make sure a lender is legit is to check their credentials with Service Nova Scotia. Look for the following signs to make sure you’re working with a reputable business.
- The lender displays a Nova Scotia licence number. A licence is required to be displayed in-shop by the lender, and you can also contact Service Nova Scotia to check if a lender is licensed.
- It provides contracts in the language you use to speak with your lender. Your lender can’t provide a contract in a language you don’t speak or aren’t comfortable conversing in. If you communicate in French, the contract will need to be in French.
- It follows rate and fee regulations. Stay away from lenders who charge more than 60% (effective annual interest).
Watch out for unlicensed lenders
Unlicensed lenders come with their share of risks:
- Illegally high interest rates or fees. If you come across a lender charging more than the maximum rate allowed, steer clear.
- Identity theft. Online lenders might misuse your personal information, putting you at risk of identity theft or a hacked bank account.
- Funds taken from your bank account without your permission. Unlicensed lenders have been known to illegally withdraw money from customer’s bank accounts to help cover the cost of loan payments.
More guides on Finder
-
Deck & patio financing: costs for new, remodel or repair
Check out deck and patio financing options, including contractor financing, personal loans and home equity financing.
-
Compare loans like Elastic
Elastic offers lines of credit up to $4,500—but it’s not available in Canada. Here are six alternatives.
-
What are the easiest banks and credit unions to get a loan in Canada?
Where to go if you want a fast and easy loan or line of credit.
-
Loans for gig workers: Get the cash you need between jobs
It can be more challenging to find loans for gig workers, but you have plenty of options.
-
Same-day loans in Canada to help pay for emergencies
In a tight spot? These Canadian same-day loans can help, but not all lenders are the same.
-
$2,500 installment loans for bad credit in Canada
Find out where you can apply online for $2,500 installment loans in Canada, even with bad credit.
-
Can you get a loan during or after a consumer proposal?
Compare loans for people in a consumer proposal and learn how to qualify for funding.
-
Best personal loans in Ontario
Learn about your options for personal loans in Ontario and how to choose the right one for your needs.
-
Best personal loans in Canada for 2024
Check out the best personal loans in Canada for different types of borrowers.
-
Urgent loans for good and bad credit in Canada
Compare urgent loans in Canada for good and bad credit.